Onlookers have been on the edge of their seats to know the outcome of Vermont sports betting revenue, and the state didn’t disappoint by generating quite an impressive market.
Sports betting went live in Vermont on Jan. 11, 2024, making it the 38th state in the US to offer permit-legalized sports betting activities. Although it wasn’t up to a full month, the Green Mountain State generated around $1.1 million in revenue. This can also be attributed to the state launch coinciding with the NFL playoffs, which no doubt attracted lots of bettors.
Wendy Knight, the Liquor and Lottery Commissioner, revealed that Vermont surpassed expectations by a wide margin. A total sports betting handle of $20 million was reported, far exceeding projections. Additionally, the average amount wagered per bet was approximately $23, indicating a substantial level of engagement from participants.
“There is far more revenue earned and far more gaming than I had expected,” she commented.
With the state initiating its sports betting market on a positive note, it’s probable that operators observing from other regions will seek to establish a presence within the state through partnerships and other approved avenues.
Currently, the trio of licensed operators within the state ranks among the leading contenders in the sports betting industry across North America.
Out-Of-State Players: Driving Force Behind VT Success Rate
From a record of almost 850,000 persons that placed bets within the three weeks of Vermont sports betting, over half of them were bettors from out of state, and 53% of sports betting accounts opened were from visitors. The Green Mountain State recorded 35,582 accounts from out-of-state and 31,275 from in-state.
“We’re also seeing that the majority of the sports wagering activity that’s taking place in Vermont is from out-of-state players.
“Out-of-state players have been playing in other states legally, and now they can engage in online sports wagering in Vermont, and they’re doing so,” Knight says. “That’s also contributing to the strong numbers that we are seeing.”
More than half of the anticipated sports betting revenue wasn’t expected to originate from offshore sources, although it’s common for residents from neighboring states to venture into new betting territories. Will this month witness a similar trend, with most bettors hailing from out-of-state? Only time will tell.
Sports Betting Operators Remit 30% to 33% to VT
As stipulated by the state’s gaming authority, a percentage ranging from 30 to 33 percent of the post-tax revenue is allocated to the state, with the exact proportion varying based on the company. Meanwhile, the three licensed operators within the state have managed to distribute winnings totaling $15.7 million to their respective customers.
At the moment, the state exclusively permits mobile sports betting facilitated through smartphone applications, with future expansion into retail platforms remaining uncertain. Despite the uncertainties, Vermont is forecast to generate $7 million in revenue within its inaugural year, with projections indicating a potential increase to $16 to $18 million over the course of the next five years.
In tandem with revenue expectations, the state has also prioritized the implementation of safe gambling practices. An agreement between operators and the Vermont Department of Liquor and Lottery mandates operators to furnish an annual responsible gaming plan, ensuring the promotion of responsible betting behaviors.
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